New IAB Study Reveals Games Advertising Among Top Three Investment Growth Areas Alongside Digital Video

Amidst the booming growth of the gaming market, a pioneering study released today during IAB PlayFronts, Changing the Game: How Games Advertising Powers Performance, explores the impact of games advertising. This first-of-its-kind analysis of brands and media agencies quantifies the success, reach, and effectiveness of games advertising, shedding light on why it is a crucial component in the marketing mix.

“This is the first large-scale quantitative analysis of brands and agencies with experience purchasing games advertising,” said Jack Koch, Senior Vice President, Research & Insights, IAB. “The study found that advertisers view games advertising as a measurable, brand safe medium that is effective across the entire consumer journey. Marketers can no longer afford to ignore this medium if they want to reach the more than 200 million U.S. consumers that play video games.”

Current State of Gaming and Games Advertising

For those using games advertising, it has become an integral and continuously growing part of the marketing mix. Notably, 86% of advertisers surveyed agree that it is of growing importance to their companies, and 40% plan to increase spend on games advertising in the coming year.

Increases in ad spend come on the heels of gaming’s growing importance and prevalence in the US. According to Entertainment Software America (ESA), there are 213 million gamers in the US, while eMarketer projects ad spend in games will surge from $8.53 billion in 2024 to $11.49 billion by 2027.

Why Marketers Are Using Games Advertising

As games advertising continues to mature, it has become a reliable platform for delivering premium, high-quality inventory. Of note, 86% of advertisers surveyed agree that it is brand safe, solidifying its position as the second-highest rated channel in terms of brand safety. In addition, 85% of those surveyed are confident in their ability to measure games advertising.

While 79% of advertisers find buying advertising in games relatively easy, it still falls behind other digital media channels concerning ease of buying and planning. Experienced planners and buyers emphasize the need for additional effort to exploit the advantages of games advertising fully. This includes conducting research on gaming audiences to understand their preferences and tailoring ad formats and creatives, which can be more complex compared to other media channels due to the diverse gaming landscape and the need for custom work.

In light of these insights, it’s evident that games advertising serves as a powerful tool for engaging with the right consumers in their preferred environment. An impressive 90% of advertisers attest to its effectiveness in reaching valuable, hard-to-reach audiences with relevant messaging. Further, 85% of advertisers recognize games advertising as a premium, high-quality platform for promoting their brands. With its ability to integrate immersive ad placements into user experiences, it offers a fresh and innovative approach to marketing.

Games Advertising is Effective Across the Entire Consumer Journey

Games advertising meets both brand and performance marketing goals, with 78% of advertisers stating that games advertising is “excellent” or “good” at awareness, 76% at driving research and consideration, and 65% at driving purchase.

Koch added, “Impressively, games advertising consistently performs well across all stages of the consumer journey, showcasing its potency compared to other media channels. We’re excited to reveal where and how to harness its power in the marketing mix.”

For detailed insights and recommendations, access the complete study here.

IAB Launches Creative Guidelines and Best Practices in Advertising in Gaming

IAB has also released guidelines and best practices for games advertising to further enable advertisers to tap into the power of this channel. The initiative introduces essential guidelines around creative in games advertising to ensure effective and respectful advertising across various gaming platforms. Addressing the challenge of intrusive advertising, the guidelines prioritize clear disclosures, appropriate calls-to-action, and adherence to quality assurance protocols to standardize practices and make ads engaging rather than disruptive. The document establishes guidelines for various ad formats, promoting collaboration among gaming and advertising professionals to achieve higher standards and an optimal balance between advertising goals and user satisfaction.

“Our Creative Guidelines and Best Practices in Advertising in Gaming aims to help preserve the Player First ethos and help brands get it right when activating in games,” said Zoe Soon, Vice President, Experience Center, IAB. “From interactive overlays to rich media experiences, we’re providing guidelines and identifying best practices to ensure ads enhance rather than disrupt gaming. By encouraging collaboration within the gaming and advertising communities, we’re building a future where ads not only meet brand goals but also contribute to a gaming journey that everyone can enjoy.”

Access the complete guidelines here.